Join our community of smart investors

Xaar wraps up thin films

The embattled printhead specialist's key management personnel are set to leave the company
September 27, 2019

Xaar (XAR) will close its thin films business by the end of the year, with key personnel set to depart the printhead specialist after having failed to find a strategic investment partner for the ailing division.

IC TIP: Hold at 39.1p

Earlier in September, Xaar announced that it was delaying the release of its half-year results in order to give the company more time to review its strategic options, having sought investment for thin films over this year. Management has previously admitted that it has failed to realise the potential of products such as the Xaar 1201 printhead, from which the company has incurred revenue reversals after the products were returned to the business for reworking. For its first half, overall printhead revenues plummeted by almost a half against Xaar’s prior year interim figures, to £16m. Xaar recognised a £39m impairment for thin film and restructuring costs of £2.5m.

It appears that management is paying the price. Alongside its results, Xaar announced that chief executive Doug Edwards (pictured above), chairman Robin Williams, chief financial officer Shomit Kenkare and a slew of directors will shortly leave the company. Signalling Xaar’s future direction, Mr Edwards will be replaced by the head of Xaar’s printhead business unit, John Mills. Xaar is searching for a successor to Mr Kenkare.